Conventional Loans

Conventional Loans

Conventional loans hold better terms than other loan types and usually issued by private lenders instead of government authorities like FHA, VA, or USDA. However, most of them have the insurance backing of government-sponsored enterprises, including the Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac).

If you’re looking for lower fees and having good-to-excellent credit, appropriate monthly debt obligations, good monthly income, and a down payment ready for 5-20% you can avail conventional mortgage in Palm Beach.

Most Common Types of Conventional Loans

Fixed Rate Mortgages: Your rate and payment never change.

• 30 Year Fixed Loan
  Benefits: Lowest fixed monthly payments
• 20 Year Fixed Loan
  Benefits: Low fixed monthly payments
• 15 Year Fixed Loan
  Benefits: Lower rate than the 30 or 20 Year Fixed Loans; Pay less interest and pay your home off more quickly.
• 10 Year Fixed Loan
  Benefits: Lower rate; Pay off your loan and build equity faster.
• 5 Year Fixed Loan
  Benefits: Lowest rate; Pay off your loan and build equity the fastest

Adjustable Rate Mortgages: After the initial period your interest rate can change once a year.

• 3/1 ARM
  Fixed Rate for 3 Years, Adjustable Rate for the remaining 27 years
• 5/1 ARM
  Fixed Rate for 5 Years, Adjustable Rate for the remaining 25 years
• 7/1 ARM
  Fixed Rate for 7 Years, Adjustable Rate for the remaining 23 years

Conventional Mortgage in Broward - Down Payment Requirements

For a conventional mortgage in Broward, the borrowers have to fill application form including down payment requirements. For these transactions, you need to have at least 5-20% of the purchase price and in case you’re aiming for refinancing, spare at least 10% equity in the property.

Property Eligibility for Conventional Loans

Mainly, conventional loans include primary residence, second homes, or investment properties at any given location. For conventional mortgages in Palm Beach, the program also allows:

• Warrantable condos
• Single-family homes
• 1-4 family residences
• Planned unit developments

Want to know if a Conventional Loan is your Best Choice?

Find our form that you can fill to get a reliable lead. We will go through your choices and will get back to you with a convincing answer. Stay right with Monster Mike Mortgage Palm Beach conventional mortgage programs! As a broker, we offer lowest cost of funds to pay closing costs for conventional loans with excellent credit.